The extension of lockdown in Karnataka is hugely disrupting the supply chain industry, auto, auto-components manufacturers among others.
The manufacture and supply of auto components to original equipment manufacturer (OEMs) in north India such as Maruti Suzuki, Mahindra, and Tata Motors among others, and to export markets have come to a halt thereby disrupting their supply schedules due to the extended lockdown.
A significant number of industrial establishments in the state are not permitted to operate by the current lockdown guidelines of the state government. Many of these industries including MSMEs will not be able to sustain lockdowns in the current form leading to extreme distress and financial burdens on their employees, industry chambers said.
In a memorandum submitted to Chief Minister B S Yediyurappa, the industry chambers such as CII, BCIC and FKCCI have stated that individuals currently gainfully employed will have a bleak future leading to loss of jobs, starvation, severe financial misery, and reverse migration into the villages. The industry bodies have requested the government to consider permitting industries to operate so as to save lives and protect livelihoods.
The extension of the strict restrictions through the government order dated May 21 is a serious setback particularly for industries, export units due to economic distress caused to them and their employees. This has adversely impacted families and society at large, said T R Parasuraman, President, Bangalore Chamber of Industry and Commerce (BCIC).
Further, he said this had paralysed the national and global supply chain and with short notice, many of the overseas global companies importing from India, particularly Karnataka, have not been able to find alternative sources to manage the current situation. This is leading to loss of confidence and may tamper the future investments into the state, he said.
The lockdown has deeply affected the export of auto components to global auto OEMs from export-oriented units in Bengaluru such as Toyota, and Volvo among others thereby causing global supply chain disruptions.
The export-oriented units have urged the chief minister to include them under the “essential industries” category as has been done in many other states. “We assure you that all industrial units will diligently comply with all Covid-19-related SOPs issued by Govt. of India and Govt. of Karnataka. Covid-19-appropriate behaviour like wearing of face masks, temperature screening, frequent hand sanitisation, social distancing, Covid-19 related communication & training, and facility sanitisation shall be followed rigorously,” Parasuraman said.